Max Life Flexi Wealth Plus Plan

Key Features of Max Life Flexi Wealth Plus Plan

Following is the list of Max Life Flexi Wealth Plus Plan:

• Plan offers 2 variants as per your requirements:

  • Wealth variant: In this, you can select from a number of options of single pay, limited pay, and regular pay to build your wealth while protecting your family.

  • Whole Life variant: In this, you can select from a number of limited payment options in which the death cover benefit is applicable for your whole life.

The minimum amount of premium will differ depending on the option and variant chosen.

• Option to choose premium payment term and policy term as per your needs:

  The plan offers flexibility to personalize with policy term and premium payment term options:

  Wealth Variant: 3 variant options are available i.e., single, limited and regular pay according to the below-mentioned combinations:

  Options	Policy Term (PT)	Premium Payment Term (PPT)
  Single pay	1 year	10 years -30 years
  Regular pay	10 to 67 years	10 years -67 years
  Limited pay	5 to 69 years	10 years – 67 years

  In Limited pay, PPT should be below PT. In regular pay, PPT should be equal to PT.

  Whole Life Variant: Premium payment term is between 7 years to 20 years. The policy term is equal to 100 years minus the entry age.

  • Multiple Fund Options: Option to choose from the below 5 strategies with no additional cost:

  • Lifecycle-based portfolio: Option to manage funds by forming a balance between debt and equity by systematic allocation on the basis on your changing age.

  • Self-managed portfolio: It is a strategy where your amount will be allocated in your selected fund.

  • Systematic transfer policy: It is an option that replicates a method of rupee cost averaging by systematically migrating your money from debt to equity each month.

  • Trigger-based portfolio: This is an event-based strategy that monitors your portfolio on monthly basis & rebalancing it to protect benefits made.

  • Dynamic fund allocation: It is a standardized method for outstanding the right balance between equity and debt by rebalancing the portfolio based on years to remaining years of maturity in the policy.

• Free switches (unlimited): There is no such limit on the no. of switches exercised in a policy year. You have the option to switch plans a number of times without any prices being levied.

• Return of mortality charges: At last, the protection cost will be taken care of by the company and the mortality charges paid during the tenure at maturity will be returned.

• Guaranteed wealth booster & Guaranteed loyalty additions: Get guaranteed loyalty additions and guaranteed wealth boosters to increase your fund amount

• Partial withdrawals 12 times in a year: You receive the option to withdraw the accumulated money within your plan funds 12 times in 1 year.

Eligibility Criteria of Max Life Flexi Wealth Plus Plan

How Does Max Life Flexi Wealth Plus Plan Work?

Step 1: Select a variant as per your choice and annual premium

The plan is available in 2 variants which are:

• Wealth variant, and

• Whole life variant

Step 2: You may select from a range of premium payment term and policy term options according to the below-mentioned table, based on your chosen variant:

+Premium payment term is less than policy term

Step 3: Choose your strategy for savings

In this, a range of 11 funds and 5 investment options are available to pick from. You can choose any of the investment strategies and no additional cost is applicable for the choices which are made. While one of the strategies ia s self-managed strategy which allows you to select any of the funds in any proportion and the other 4 are automated options that allows you to have a hassle-free experience rebalancing depending on a defined and set manner. Below are the funds mentioned:

• High Growth fund: It is a multi-cap fund, focusing on mid-cap equities in which pre-dominant investments are the company’s equities with the potential for high growth in the long tenure.

• Diversified equity fund: The objective is to invest at least of 70 percent of the corpus fund in varied equity stocks over the range of the whole capitalization, focusing on mid and large-cap companies.

• Growth super fund: An equity-oriented fund in which at least 70 percent of the corpus fund is capitalized in equities all the time. And the rest amount is capitalized in debts across corporate, money market, and government markets.

• Growth fund: This type of fund is invested in different sections of assets like government securities, equities, corporate bonds, and money market tools.

• Sustainable equity fund: The objective is to capitalize in chosen companies from the investment sector, which do business environmentally and socially while maintaining standards of government.

• Balanced fund: This invests in the debt products like government securities, money markets, corporate bonds, etc, that are issued by the Government of India and to some level in the money market and corporate bonds.

• Conservative fund: This type of fund mainly invests in debt tools like government securities, money market instruments, corporate bonds, etc. These are issued by the State governments/Government of India and to some level in corporate bonds and money market instruments.

• Dynamic fund: The objective of this fund is to make high returns by investing it in good quality tools involving corporate bonds, money market instruments, and government securities. It also focuses on maximizing returns, keeping liquidy and safety of the portfolio in mind.

• Secure fund: This type of fund mainly invests in debt instruments like money market instruments, corporate bonds, and government securities, etc. issued majorly by State Governments/Governments of India, banks, and corporate.

• Money market fund: The objective of this type of fund is to deliver returns linked to the levels of the money market from a portfolio with minimal rate of interest and credit risk in order to offer a high level of capital safety.

• Secure plus fund: The objective of this fund is to offer higher investment security by way of higher investment proportion in sovereign documents that carry a guarantee for repaying principal and interest from the Indian Government.

Discontinuance policy fund: This fund option is only available in case of surrendering or discontinuing the plan within the first 5 years. The risk rating is low for this fund.

Benefits of Max Life Flexi Wealth Plus Plan

1. Death Benefit

   In the case of the policyholder’s death during the policy term, the nominee/beneficiary shall receive the highest of the following benefits:

   • Fund Value (as of the death date)

   • Sum Assured (decreased by allowed partial withdrawals, if any), or

   • 105% of the full premium received up to the death date

   The plan terminates on the policyholder’s death.

2. Maturity Benefit

   • Fund Amount: You will be liable to get an amount at maturity, provided the option of settlement has not been exercised, i.e., equivalent to the fund amount, where the value of the fund will be computed as:

   • Fund Value: Total number of units in fund X respective NAV of the fund as on the maturity date.

3. Return of Mortality Charges (RoMC)

   At the time of maturity during the end of the policy term, the total amount of mortality charges that are deducted in respect of the sum assured provided throughout the policy tenure. This will be added back as RoMC, to the fund amount, as applicable.

   Let’s understand the maturity benefit with the help of an example:

   For Wealth Variant

   Age	Annual Premium (in Rs.)	Premium Payment Term	Policy Term	Fund value at maturity
   				4% return rate	8% return rate
   35	1,00,000	5	10	556594	760100
   35	2,00,000	1	10	215506	324938
   40	1,00,000	5	10	554861	757390
   40	2,00,000	1	10	215357	324842

   For Whole Life Variant

   Age	Annual Premium (in Rs.)	Premium Payment Term	Policy Term	Fund value at maturity
   				4% return rate	8% return rate
   35	1,00,000	7	65	4626304	48763915
   35	2,00,000	10	65	14243861	141755128
   40	1,00,000	7	60	3897186	34138520
   40	2,00,000	10	60	11972438	98649693

4. Guaranteed Loyalty Additions

   These additions are paid as a % of the full fund amount at the last of each policy year i.e., starting from the 6th year of policy and at the end of each year of the policy, provided all the due amounts of premium have been paid for different premium bands as discussed below:

   • Band 1: Not applicable

   • Band 2: 0.25%

   • Band 3: 0.40%

5. Guaranteed Wealth Boosters:

   The company also pays guaranteed wealth boosters that is an additional fund value % to be added to the fund by generating additional units at the last of every five years i.e., starting from the 10th year of the policy. They are a form of additionally guaranteed additions and the additional % will be assessed by the premium amount paid by the policyholder as:

   • Band 1: Not Applicable

   • Band 2 & 3: 2%

6. Tax Benefits

   Get tax benefits as per the prevailing laws of the Income Tax Act, of 1961.

Policy Details

• Switching of policy: You have the option to switch between the available fund options anytime during the policy tenure, subject to a minimum amount for switching of Rs. 5000. There are no such limits on the number of switches done in 1 year of the policy. The policyholder may switch any time without any rates being levied.

The policyholder shall not be allowed to avail of this option during the discontinuance period in the first 5 years of the plan. Switches will only be allowed during the time of settlement.

• Premium Redirection: The policyholder may redirect the future amount of premium between available fund options anytime by providing written notice before the due date of the premium. He/she should notify the amount or premium proportion to be paid to the company into each fund during redirection. A maximum of 6 redirections of premium are allowed in any year of policy and all are free of any charges.

• Partial Withdrawal:

  • Partial withdrawal will not be allowed in the first 5 years of the policy and then a maximum of 12 partial withdrawals can be taken in 1 year of the policy.

  • The minimum amount for partial withdrawal for one transaction is Rs. 5000

  • If the policyholder is minor, partial withdrawals are not applicable till the minor policyholder attains 18 years of age.

  • This means partial withdrawal is only allowed if the policyholder is at least 18 years at the date of partial withdrawal.

• Decrease or increase in policy term or premium payment term: A decrease or increase is allowed in the policy term and premium payment term under the policy, subject to all due amounts of premium that are being paid and completion of lock-in time.

• Option of Settlement: Policyholders may have at least 15 days before the policy’s maturity date availed for a settlement option, where the policy will continue after the date of maturity for a time exceeding 5 years from the date of maturity. In this option, you will get periodical payments of unit fund amount by canceling units at their applicable NAV.

• Premium Reduction: At the time of completing the first 5 policy years, the policyholder has the option to decrease the amount of premium up to 50 percent of the actual annual premium amount, subject to the minimum limit of premium, provided all due premium amounts have been paid. The life assured should inform the company about the decision to apply this option at least 15 days before the due date of the premium.

• Grace period: 30 days of grace period is allowed from the premium due date and 15 days in case of monthly mode is allowed for the payment of each premium.

• Free look period: The policyholder has a free look time of 15 days (and 30 days in case if the plan is sourced from distance marketing) from the receipt date to review the T&Cs of the plan. In case you are not satisfied with any of the T&Cs, the life assured has the option to return the plan mentioning the reasons for objections. The amount will be received equivalent to the non-allocated premium amount plus levied charges by canceling the units plus the fund amount at the cancellation date, minus charges deducted towards rider and mortality.

• Surrendering of policy: Policyholders have the right to surrender the plan anytime during the policy term by informing the insurer in writing. The surrender benefit is equivalent to the fund amount minus discontinuance/surrender charges.

• In case of surrendering the policy within the lock-in time, the insurer will give the fund amount by generating units into the discontinuance plan fund after deducting all the discontinuance or surrender prices.

• In case of surrendering the policy after five years i.e., after the lock-in-time completion, the unit account will be closed and the surrender value is paid equivalent to the fund amount of the units in the segregated fund on the receipt date of surrender request and then the plan shall terminate afterward.

• Revival Period: Policyholders have the option to revive the plan within 3 years from the date of discontinuance to revive your plan. This option is subjected to below conditions:

  • Providing a written request to revive the plan

  • Paying the company’s all overdue contractual premium amounts

  • Providing insurability evidence of the policyholder at your own price acceptable to the insurer

• Nomination: The nomination shall be allowed u/s 39 of the Insurance Act, 1938.

• Assignment: The assignment shall be allowed u/s 38 of the Insurance Act, 1938

Exclusion

Suicide: if the policyholder dies because of suicide, whether insane or sane, within 1 year (12 months) from the inception date of the policy or from the revival date of the plan, the beneficiary/nominee shall be eligible for the fund amount, as available on the date of informing of death.